The following is a summary of the Karooooo Ltd. (KARO) Q4 2024 Earnings Call Transcript:

Financial Performance:

• Karooooo reported an 18% increase in Q4 subscription revenue, reaching ZAR935 million.

• The operating profit rose by 25% to ZAR296 million, and earnings per share increased by a significant 45% to ZAR6.81.

• The free cash flow of the company stood at ZAR161 million, while the quarter earnings amounted to ZAR215 million.

• For FY 2025, the company expects an operating profit margin between 27% to 31% and earnings per share ranging between ZAR27.5 to ZAR31.

Business Progress:

• Karooooo has cultivated a subscriber base of over 1,972,000 by the end of the financial year and maintains a high commercial customer retention rate of 95%.

• The company is investing in AI capabilities, which have already brought significant operational efficiency.

• Karooooo's expansion plans include accelerating investments in Southeast Asia under new leadership and moving into a new head office building in South Africa in Q2 of FY '25.

• The company plans to continue with its share buyback program and aims to declare a dividend in Q2 of FY '25 due to a strong cash position.

• Karooooo's business momentum is increasing in regions where their brand is well-established, and their aim is to replicate this success in other regions.

• No current plans for acquisitions, but there has been successful integration with OEMs in Europe and a potential for integrating with EVs.

More details: Karooooo IR

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